The global cocoa market is experiencing a significant surge, and Uganda’s cocoa farmers are reaping big from the trend.
With local prices reaching Shs25,000 per kilogram, growers are enjoying strong returns on their investments.
In 2023, export prices ranged from USD2.42 about Shs8,921 to USD3.09 USD about Shs11,347 per kg. By 2024, these prices increased to a new range of USD4.48, about Shs16,392 per kg, highlighting the continued growth in the export price of Uganda Cocoa Bean.
This development is a welcome relief for farmers who have been struggling with fluctuating prices in recent years.
Global Cocoa Prices
The global cocoa price has reached USD4.26 per pound, about Shs38,340 per kilogram. This price increase is a significant boost to Uganda’s cocoa farmers, who are now able to sell their produce at a higher price. The increased demand for cocoa globally has led to higher prices, and Uganda’s farmers are well-positioned to benefit from this trend.
Benefits for Ugandan Cocoa Farmers
The soaring global cocoa prices have several benefits for Ugandan farmers, including:
Increased Income
With higher prices, farmers can earn more income from their cocoa sales, improving their livelihoods and enabling them to invest in their farms.
Improved Livelihoods
The increased income from cocoa sales can lead to improved livelihoods for farmers and their families, enabling them to access better healthcare, education, and other essential services.
Increased Investment
The higher prices may also encourage farmers to invest more in their farms, leading to improved productivity and quality.
Other Commodities
While cocoa prices are soaring, other commodities in Uganda are also performing well.
Arabica coffee prices are climbing sharply due to drought-affected forecasts from Brazil, and Uganda’s Arabica farmers are well-positioned to benefit.
Robusta coffee demand remains strong, maintaining firm prices for Uganda’s Kiboko and FAQ.
Local Market Prices
The local market prices for various commodities in Uganda are as follows:
Cocoa: 25,000 Ugandan shillings per kilogram
Coffee:
Kiboko (unprocessed Robusta): 6,700 – 7,500 Ugandan shillings per kilogram
FAQ (Fair Average Quality Robusta): 14,500 – 15,200 Ugandan shillings per kilogram
Arabica Parchment: 14,500 – 15,500 Ugandan shillings per kilogram
Beans: 3,500 – 4,100 Ugandan shillings per kilogram
Tomatoes: 300,000 – 350,000 Ugandan shillings per box
The soaring global cocoa prices are a significant boost to Uganda’s cocoa farmers, who are now able to sell their produce at a higher price.
The increased income from cocoa sales can lead to improved livelihoods for farmers and their families, enabling them to access better healthcare, education, and other essential services.
With the current market trends, Uganda’s cocoa farmers are well-positioned to benefit from the increased demand for cocoa globally.